Genesta is raising capital for a second pan-Nordic fund targeting non-core commercial real estate in major cities.
The Stockholm-based fund manager is looking to secure between 鈧�250m and 鈧�300m from institutional investors for what would be its second fund. The closed-end, seven-year vehicle will be leveraged at 50% ratio and target an IRR of 13% to 14%.
Anders Palmgren, Genesta senior director for fund raising, said: 鈥淭he core to value-add spread is at a record high and, up until now, investors have been more focused on core.
鈥淏ut what we鈥檝e found is that the four Nordic countries鈥� cycles provide diversification.
鈥淔inland, for example, hasn鈥檛 come back like Sweden has, while Denmark is still dealing with legacy issues and not through its workout stage yet.鈥�
Palmgren, who co-founded Genesta in 2003, has returned to the firm to manage fund raising after six years at Catella. Genesta, he added, is looking beyond the Nordics for institutional investors for the latest fund and will begin sourcing investments alongside capital raising, using advisory firm Capra Global Partners.
Genesta鈥檚 first fund, Genesta Nordic Baltic Real Estate, launched in 2007 and also targeted commercial value-add properties. The fund attracted investment from 12 European institutional investors and was fully invested in Finland, Sweden, Norway and Lithuania.
